While cryptos like Bitcoin (BTC-USD) and Ethereum (ETH-USD) attract most of the headlines, it’s often the smaller, fledgling cryptos that offer the most sizable upside. History has shown us time and again that those who took a chance on relative unknown tokens before the masses piled in reaped rewards far beyond what the bigger and safer (as safe as crypto gets) cryptocurrencies could offer. But with that potential for outsized gain comes commensurate risk – these altcoins can see double-digit swings almost daily as their low market caps leave them exposed to volatility.
If your temperament can manage that degree of short-term uncertainty in exchange for an outside shot at true crypto riches, I believe the following cryptos are worth diving into.
Octavia (VIA-USD)
If you’ve been keeping tabs on the wider tech market lately, you’ll have noticed the relentless fervor around artificial intelligence. The hype shows no sign of abating. In the crypto sphere, this AI craze has spawned a wave of promising new projects leveraging AI capabilities. One standout that has flown under most investors’ radars is Octavia (VIA-USD).
Still in its infancy, Octavia debuted on CoinMarketCap in late February. Yet, in that short time, it has already soared 300% and currently boasts a market cap of $16.4 million. Considering the nascency of this project, I believe its growth story is only just getting started.
Octavia’s uniqueness stems from its core feature – an AI assistant designed to support crypto traders. Users can leverage this assistant to execute trades automatically based on customized parameters. For instance, you could program it to buy X amount of X crypto at Y price and sell at Z price. The potential time and effort savings for active crypto traders are immense.
Admittedly, Octavia’s tokenomics could use improvement, with dilution expected in future years. However, if Octavia continues gaining traction among crypto investors, I foresee its market cap ballooning well over $100 million. The project remains under the radar for now, giving savvy investors a chance to get in early before the hype train leaves the station.
Stratos (STOS-USD)
Another red-hot AI-related sector right now is data centers. The AI boom is fueling massive demand for computing power and data storage. Many legacy data center providers are struggling to keep up.
Enter Stratos (STOS-USD) – a newly-launched crypto project offering a decentralized data mesh for storage, databases, and computing. Stratos was engineered specifically to overcome the scaling challenges of blockchain networks, while retaining decentralization’s core benefits like security, traceability, and privacy.
So far, the token’s momentum has been astoundingly positive. Just over the past month, Stratos’ price has doubled. Its current market cap sits at $64 million, leaving ample headroom for growth if Stratos attracts more data center demand.
Other cryptos like Filecoin (FIL-USD) and Storj (STORJ-USD) in the decentralized data storage space have absolutely skyrocketed recently. As a smaller and relatively undiscovered player, Stratos could follow suit in the coming months as investors take notice. The project has strong tailwinds given the data center capacity crunch. For risk-tolerant investors, now looks like an opportune time to stake out an early position in STOS.
Tatsu (TATSU-USD)
Tatsu (TATSU-USD) is a brand-new crypto project building a platform that intersects decentralization and machine learning for advanced applications. Although intriguing in concept, I’m slightly more cautious about Tatsu compared to the other picks.
In the past 24 hours alone as I write this, Tatsu’s token price has plunged 25%, crushing recent gains. With a market cap of just $30 million, Tatsu remains firmly in small-cap territory, where volatility can manifest itself in violent fashion in either direction.
That said, Tatsu is not without long-term promise. It aims to create an open ecosystem where developers can collectively build and monetize machine learning capabilities. Tatsu is also closely tied to Bittensor (TAO-USD), another crypto gaining immense traction in recent months. Bittensor has rocketed from $46 to $677 since late October, showcasing the buzz around crypto projects leveraging AI.
Tatsu only recently listed on the Mexc exchange, so early backers are likely cashing out returns right now. I’d advise waiting a few days for the dust to settle before initiating any position. While the project’s concepts are exciting, the recent whipsawing price action pushes it down my list as the riskiest bet among these three picks. With the right timing though, Tatsu could still deliver outsized upside from today’s levels.
Small, low-volume cryptos
On Low-Capitalization and Low-Volume Cryptocurrencies: InvestorPlace does not regularly publish commentary about cryptocurrencies that have a market capitalization less than $100 million or trade with volume less than $100,000 each day. That’s because these “penny cryptos” are frequently the playground for scam artists and market manipulators. When we do publish commentary on a low-volume crypto that may be affected by our commentary, we ask that InvestorPlace.com’s writers disclose this fact and warn readers of the risks.
Read More: How to Avoid Popular Cryptocurrency Scams
On the date of publication, Omor Ibne Ehsan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
